FOURTH AMENDMENT OF FMC TECHNOLOGIES, INC.EMPLOYEES RETIREMENT PROGRAM PART II UNION HOURLY EMPLOYEES RETIREMENT PLAN
Exhibit 10.6m
FOURTH AMENDMENT OF
FMC TECHNOLOGIES, INC. EMPLOYEES RETIREMENT PROGRAM
PART II UNION HOURLY EMPLOYEES RETIREMENT PLAN
WHEREAS, FMC Technologies, Inc. (the Company) maintains the FMC Technologies, Inc. Employees Retirement Program Part II Union Hourly Employees Retirement Plan (the Plan);
WHEREAS, amendment of the Plan is now considered desirable to (i) update the Plans definition of Actuarial Equivalent in furtherance of the final U.S. Treasury regulations regarding qualified joint and survivor annuity relative value requirements; (ii) reduce the cashout amount for Small Annuities with respect to Code Section 401(a)(31) and the related Department of Labor regulations regarding the administrative handling of Small Annuities; (iii) provide for retroactive annuity starting dates and (iv) increase the Benefit Rate with respect to Supplement 3, Smith Meter Plant, Erie, Pennsylvania; and
WHEREAS, this amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of the amendment;
NOW, THEREFORE, by virtue and in exercise of the powers reserved to the Company under Section 11.1 Plan Amendment or Termination of the Plan, the Plan is hereby amended in the following respects:
1. Effective February 1, 2006, the first paragraph of the definition of Actuarial Equivalent contained in Article I of the Plan is hereby amended and restated in its entirety to read as follows:
Actuarial Equivalent means a benefit determined to be of equal value to another benefit, on the basis of either (a) the UP-1984 Mortality Table and 8- 1/2% interest compounded annually or (b) the mortality table and interest rate described in the applicable Supplement.
Notwithstanding the above to the contrary, for purposes of optional form of benefit conversions (including optional form of benefit conversions described in Supplements 2, 3, 4, 5 and 6, but excluding optional form of benefit conversions described in Supplement 1), Actuarial Equivalent means a benefit determined to be of equal value to another benefit on the basis of the greater of (1) either (a) the actuarial equivalent, computed using the UP-1984 Mortality Table and 8- 1/2% interest compounded annually, of the accrued benefit as of February 1, 2006 or (b) the actuarial equivalent, computed using the mortality table and interest rate described in the applicable Supplement, of the accrued benefit as of February 1, 2006, or (2) the actuarial equivalent, computed using the RP-2000 Combined Healthy Participant Table (RP2000CH), weighted 80% male/20% female and 6% interest compounded annually, of the accrued benefit as of the date of determination on or after February 1, 2006.
2. Effective January 1, 2004, Section 6.3.2 is hereby amended by adding the following sentence to the end thereof to read as follows:
Notwithstanding the above to the contrary, effective January 1, 2004, in the event a Participant elects a Retroactive Annuity Starting Date as provided in Section 6.5, the notice under 6.3.1 shall be provided to the Participant on or about the date that the Participant files an election for a Retroactive Annuity Starting Date.
3. Effective January 1, 2004, Section 6.3.5 is hereby added to the Plan to read as follows:
Notwithstanding the foregoing provisions in Section 6.3, effective January 1, 2004, a Participant may elect a Retroactive Annuity Starting Date (as defined in Treas. Reg. 1.417(e)-1(b)(3)(iv)(B)), pursuant to Section 6.5. In the event that the notice information described in Section 6.3 is provided to the Participant after the Participants Annuity Starting Date (as defined in Section 417(f)(2) of the Code) or Retroactive Annuity Starting Date, the Participant shall have at least 30 days after the date the notification is provided to make the election described in Section 6.3. The Participant may waive this 30 day period pursuant to the provisions of Section 6.3.4.
4. Effective January 1, 2004, Section 6.5 is hereby added to the Plan to read as follows:
6.5. Election of Retroactive Annuity Starting Date Effective January 1, 2004, a Participant may elect a Retroactive Annuity Starting Date (as defined in Treas. Reg. 1.417(e)-l(b)(3)(iv)(B)), that occurs on or before the date the notice information described in Section 6.3 is provided to the Participant, provided the following conditions are satisfied:
(a) | The Participants spouse (including an alternate payee who is treated as the spouse under a qualified domestic relations order), determined as if the date distributions commence were the Participants Annuity Starting Date (as defined in Section 417(f)(2) of the Code), consents to the Participants election of a Retroactive Annuity Starting Date. The spousal consent requirement of this Section 6.5(a) is satisfied if such consent satisfies the conditions of Section 6.3.3 above. |
(b) | If the date distribution commences is more than 12 months from the Retroactive Annuity Starting Date, the distribution provided based on the Retroactive Annuity Starting Date shall satisfy Section 415 of the Code as though the date distribution commences is substituted for the annuity starting date for all purposes, including for purposes of determining the applicable interest rate and applicable mortality table, (as defined in Article I). |
(c) | If the distribution is payable as a lump sum, the distribution amount shall not be less than the present value of the Participants accrued benefit, determined (i) using the applicable mortality table and applicable interest rate as of the distribution date or (ii) using the applicable mortality table and applicable interest rate as of the Participants Retroactive Annuity Starting Date. For purposes of this paragraph (c) applicable mortality table and applicable interest rate are defined in Article I. |
If a Participant elects a Retroactive Annuity Starting Date the following provisions shall apply:
(a) | future periodic payments shall be the same as the future periodic payments, if any, that would have been paid with respect to the Participant had payments actually commenced on the Retroactive Annuity Starting Date; |
(b) | the Participant shall receive a make-up payment to reflect any missed payment or payments for the period from the Retroactive Annuity Starting Date to the date of actual make-up payment (with appropriate adjustment for interest from the date the missed payment or payments would have been made to the date of the actual make-up payment); |
(c) | the benefit determined as of the Retroactive Annuity Starting Date shall satisfy Section 417(e)(3) of the Code, if applicable, and Section 415 with the applicable interest rate and applicable mortality table (as defined in Article I) determined as of that date; and the Retroactive Annuity Starting Date shall not precede the date the Participant could have otherwise started receiving benefits under the Plan. |
5. Effective for distributions made on or after January 1, 2005, the first paragraph of Section 12.8 contained in Article XII of the Plan is hereby amended and restated in its entirety to read as follows:
If the sum of (a) the lump sum Actuarial Equivalent value of a Normal, Early, or Deferred Retirement Benefit under Article III, Termination Benefit (payable at the Participants Normal Retirement Date) under Article IV or Survivors Benefit under Article VII, excluding any Aetna or Prudential nonparticipating annuity; and (b) the lump sum Actuarial Equivalent value of any Aetna or Prudential nonparticipating annuity is equal to $1,000 (or such other amount as may be prescribed in or under the Code) or less, such amounts shall be paid in a lump sum as soon as administratively practicable following the Participants retirement, termination of employment or death.
6. Effective September 1, 2005, Section 1-7 of Supplement 1 Jetway Systems Division Ogden, Utah is hereby amended in its entirety to read as follows:
Early Retirement Date means the later of the Participants 55th birthday and the date the Participant acquires 10 years of Credited Service.
7. Effective September 1, 2005, the table of early retirement reduction factors set forth in Section 1-8 of Supplement 1 Jetway Systems Division Ogden, Utah is hereby deleted in its entirety and replaced with the following table:
Age Benefits Begin | Reduced Percentage | ||
65 | 0 | % | |
64 | 96 | % | |
63 | 92 | % | |
62 | 88 | % | |
61 | 84 | % | |
60 | 80 | % | |
59 | 75 | % | |
58 | 70 | % | |
57 | 65 | % | |
56 | 60 | % | |
55 | 55 | % |
8. Effective January 1, 2006, the chart that appears in Section 3-5 Normal Retirement Benefit of Supplement 3 - Smith Meter Plant, Erie, Pennsylvania is hereby amended in its entirety to read as follows:
A Participants monthly Normal Retirement Benefit shall be determined by multiplying the fixed rate provided below in effect on the date the Participants Years of Credited Service terminate, multiplied by the Participants Years of Credited Service:
Termination Date | Benefit Rate | ||
On or after January 1, 1999 but prior to January 1, 2001 | $ | 25.00 | |
On or after January 1, 2001 But prior to January 1, 2002 | $ | 26.00 | |
On or after January 1, 2002 but prior to January 1, 2003 | $ | 27.00 | |
On or after January 1, 2003 but prior to January 1, 2004 | $ | 28.00 | |
On or after January 1, 2004 but prior to January 1, 2005 | $ | 29.00 | |
On or after January 1, 2005 but prior to January 1, 2006 | $ | 29.00 |
On or after January 1, 2006 but prior to January 1, 2007 | $ | 30.00 | |
On or after January 1, 2007 but prior to January 1, 2008 | $ | 31.00 | |
On or after January 1, 2008 but prior to January 1, 2009 | $ | 32.00 | |
On or after January 1, 2009 but prior to January 1, 2010 | $ | 33.00 | |
On or after January 1, 2010 | $ | 33.00 |
IN WITNESS WHEREOF, the Company has caused this amendment to be executed by a duly authorized representative this 24TH day of OCTOBER, 2006.
FMC Technologies, Inc. | ||
By: |
| |
Vice President | ||
Human Resources |